The actual numbers on teen banking

There is no single national figure for what percent of teens have opened a bank account. The number varies depending on age (a 17-year-old is more likely to have one than a 13-year-old), income level, race, and geography. Different surveys also measure different things — some count accounts opened by the teen themselves, others count accounts the teen can access even if a parent opened it.

The most recent broad data comes from the Federal Reserve's Survey of Household Economics and Decisionmaking. In 2023, roughly 60 to 70 percent of teenagers reported having a bank account of some kind, though this includes accounts where a parent is the primary account holder. When you narrow it to accounts where the teen is the primary holder or a joint account holder with decision-making power, the number drops to somewhere between 40 and 55 percent depending on the age group.

Surveys from financial institutions and fintech companies often report higher numbers — sometimes 70 to 80 percent — but these typically sample from populations already interested in banking or digital finance, so they overstate the real picture.

Key Takeaways

  • Between 40 and 70 percent of U.S. teens have some form of bank account, depending on how the account is structured and who is measured.
  • Younger teens (13–15) open accounts at lower rates than older teens (16–18), and rates vary significantly by household income and race.
  • Many teens have accounts their parents opened and control, which counts as "having an account" but does not mean the teen can use it independently.
  • Teen banking rates have risen over the past decade as more banks and fintech companies created teen-specific products.

Why the numbers vary so much between surveys

The biggest reason different sources report different percentages is that they define "having a bank account" differently. Some surveys ask "Do you have access to a bank account?" and count any teen who can use one, even if a parent opened it and controls it. Others ask "Did you open a bank account yourself?" which produces a much lower number.

Age matters too. The Federal Reserve's data shows that 13- and 14-year-olds have accounts at rates around 35 to 45 percent, while 17- and 18-year-olds reach 65 to 75 percent. A survey that samples mostly older teens will report a higher overall percentage than one that includes younger teens.

Income and race also shift the numbers. Teens in households earning over $75,000 per year have account ownership rates around 70 to 80 percent. Teens in households earning under $30,000 per year have rates closer to 40 to 50 percent. White and Asian teens report higher account ownership than Black and Hispanic teens, though the gap has narrowed in recent years.

What "having an account" actually means for a teen

A teen with a bank account does not always mean a teen who can make independent financial decisions. Many accounts are custodial accounts — the parent is the legal account holder, the teen is a secondary user, and the parent can see all transactions and freeze the account at any time. The teen can deposit money and make withdrawals, but has no control over fees, account settings, or whether the account stays open.

Other accounts are joint accounts where both the teen and parent are listed as account holders with equal legal rights. In these accounts, either person can typically withdraw all the money or close the account. Some banks allow the parent to set restrictions on what the teen can do — limiting daily withdrawal amounts, for example — but the teen still has more independence than in a custodial account.

A smaller number of teens have independent accounts opened in their own name alone. This usually requires the teen to be at least 16 or 18, depending on the bank, and often requires a parent to co-sign or be present at opening. Once opened, the teen has full control, though the bank may still restrict certain features like overdraft protection until the teen turns 18.

How teen account ownership has changed over time

Teen banking has grown steadily over the past 10 to 15 years. In the early 2010s, surveys suggested that 40 to 50 percent of teens had any form of bank account. By 2020, that number had risen to around 55 to 65 percent. The increase accelerated after 2020, partly because more banks launched teen-specific products and partly because the pandemic pushed more families toward digital banking.

The rise of teen checking accounts — accounts designed specifically for minors, often with parental oversight built in — has made banking more accessible to younger teens. Banks like Chase, Bank of America, and Ally, plus fintech companies like Greenlight and Current, now offer accounts for teens as young as 13 or even younger. These products did not exist in the same form 15 years ago.

However, the growth has not been even across all groups. Teens in lower-income households and teens of color have seen slower growth in account ownership compared to higher-income and white teens, though the gap is narrowing.

Why some teens still do not have bank accounts

The main barriers are cost, access, and trust. Some families avoid banks because of monthly fees, minimum balance requirements, or overdraft charges. Others live in areas with few bank branches — rural areas and some urban neighborhoods are underserved by traditional banks. Still others have had bad experiences with banks in the past or distrust the financial system.

Some parents also see no reason to open an account for a young teen who does not earn income or make independent purchases. A 13-year-old who receives an allowance in cash and does not work may not need a bank account yet. Parents may wait until the teen gets a job or turns 16 before opening one.

Immigration status can also be a barrier. Some families without Social Security numbers or proof of residency find it difficult to open accounts, even though some banks and credit unions do offer accounts to undocumented immigrants.

What the data tells you about your own teen

If you are deciding whether to open an account for your teen, the fact that 40 to 70 percent of other teens have one does not tell you whether your teen needs one. That depends on your teen's age, whether they earn or spend money independently, and what you want them to learn about managing money.

A teen who receives an allowance, gets paid for chores, or has a job benefits from having a place to deposit and track that money. A teen who makes online purchases or wants to save for something specific also has a practical reason for an account. A younger teen who does not yet handle money independently may not need one yet, or may benefit from a custodial account where you can monitor spending while they learn.

The account type matters more than whether your teen has one at all. A custodial account lets you teach your teen about banking while keeping control. A joint account gives your teen more independence. An independent account is appropriate only for older teens who are ready for full responsibility.

Frequently Asked Questions

What age can a teen open a bank account?

Most banks require a teen to be at least 13 years old and to have a parent or guardian co-sign or be present. Some banks allow accounts for younger children if a parent is the primary account holder. A few fintech companies offer accounts for children as young as 6, though these are custodial accounts controlled entirely by the parent.

Do teens need a Social Security number to open a bank account?

Yes, most banks require a Social Security number. However, some credit unions and banks do open accounts for people without a Social Security number if they have an Individual Taxpayer Identification Number (ITIN). Call ahead to ask whether a specific bank or credit union will work with your situation.

Can a teen open a bank account without a parent?

Not typically before age 18. Most banks require a parent or legal guardian to be present or to co-sign. A few banks allow teens age 16 or 17 to open accounts with parental permission but without the parent physically present, though this is rare. At 18, a teen can open an account independently.

What is the difference between a teen account and a regular checking account?

Teen accounts usually have lower or no monthly fees, no minimum balance requirement, and built-in parental controls so you can see transactions and set spending limits. Regular checking accounts often have fees and higher minimums. Teen accounts are designed to teach money management without the cost of adult accounts.

If my teen has a bank account, can they use it to get a credit card?

Not immediately. A bank account and a credit card are separate products. Your teen can use a debit card linked to the account right away. A credit card typically requires the teen to be 18 or to have a parent co-sign, and the teen needs to build a credit history first, which takes time.